This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

J&J to Acquire Omrix for $438 Million

Johnson & Johnson (JNJ - Get Report) signed a deal to acquire Omrix Biopharmaceuticals (OMRI) for $438 million in cash.

Omrix is expected to operate as a stand-alone entity reporting through Johnson & Johnson's Ethicon subsidiary, a provider of suture, mesh, hemostats for surgery. In a statement Monday, Johnson & Johnson said the acquisition provides Ethicon with an "opportunity to strengthen its presence in active, biologic-based hemostats and convergent products for various surgical applications. "

Under the terms of the agreement, Johnson & Johnson will begin a tender offer to Omrix shares for $25 each. The tender offer is expected to close by the end of December.

Shares of Omrix closed Friday at $21.16.

Robert Taub, Omrix's CEO, and entities he controls, have agreed to tender about 16% of Omrix's outstanding shares to the tender.

If the deal closes in 2008, Johnson & Johnson said it expects to incur a one-time, after-tax charge of about $120 million from the write-off of in-process research and development charges. Johnson & Johnson said the acquisition is expected to be breakeven to slightly dilutive to its 2009 per-share earnings.

Ethicon currently has exclusive distribution rights in the U.S. and the European Union for two active, biologic-based hemostats manufactured by Omrix. The companies also are partners on a separate surgical product which is in Phase II trials.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!
SYM TRADE IT LAST %CHG
JNJ $100.13 0.00%
AAPL $128.95 0.00%
FB $78.99 0.00%
GOOG $537.90 0.00%
TSLA $226.03 0.00%

Markets

DOW 18,024.06 +183.54 1.03%
S&P 500 2,108.29 +22.78 1.09%
NASDAQ 5,005.3910 +63.9670 1.29%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs